LOS ANGELES, Oct. 31, 2002 (PRIMEZONE) -- Glancy & Binkow LLP -- the first firm to file a class action lawsuit against ESS Technology, Inc. based upon recent events -- announces 12 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of ESS Technology, Inc. ("ESS" or the "Company") (Nasdaq:ESST) between January 23, 2002 and September 12, 2002, inclusive (the "Class Period"), may move the Court, not later than November 12, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges ESS and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and rule 10b-5 of the Securities and Exchange Commission. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially misleading statements regarding the nature of ESS's revenue and business prospects caused ESS's stock price to become artificially inflated, inflicting damages on investors. The complaint alleges that defendants failed to disclose the declining demand, downward price pressure and increasing commodification of ESS's core product -- DVD-processor chips -- as new competitors gained market share. The effect of these problems and the true nature of the Company's business prospects were revealed on the last day of the Class Period, and the next day the Company's stock plunged more than 30%.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.